The number of contract signings to buy homes fell significantly in April in comparison to March. However, despite the double-digit decline, Lawrence Yun, NAR’s chief economist, says he sees improvement just around the corner.
Disrupted Contract Signings
In fact, he thinks April may be the low point for contract signings. “While coronavirus mitigation efforts have disrupted contract signings, the real estate industry is ‘hot’ in affordable price points with the wide prevalence of bidding wars for the limited inventory,” Yun said. In fact, pending transaction numbers might indicate an all-time low since NAR started tracking such transactions since 2001. However, Yun expects the industry to bounce back soon. “In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about home buying in the midst of the social distancing measures.”
Reopening of the Industry
With states reopening, new listings rising, and Realtors reporting that they’re able to complete transactions while adhering to new safety precautions, there is increasing optimism that the housing market will be even more resilient than expected. As evidence of that, the NAR has recently revised their forecast to reflect that optimism. Their latest outlook sees home sales falling less than originally forecast and prices increasing, rather than remaining flat. Follow the link for more information (source).
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